Zoom records revenue of $1.07bn in Q1 2023
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Zoom records revenue of $1.07bn in Q1 2023

Zoom records revenue of $1.07bn in Q1 2023

The number of customers contributing more than $100,000 in trailing 12 months revenue increased 46 per cent year-over-year

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Zoom Video Communications reported $1.073bn in revenue for the first fiscal quarter, ended April 30, 2022. First quarter revenue rose 12 per cent year-on-year.

“In Q1, we launched Zoom Contact Center, Zoom Whiteboard and Zoom IQ for Sales, demonstrating our continued focus on enhancing the customer experience and promoting hybrid work. We believe these innovative solutions will further expand our market opportunity for future growth and expansion with customers,” said Zoom founder and CEO, Eric S. Yuan.

“Additionally in Q1, we delivered revenue of over one billion dollars driven by ongoing success in Enterprise, Zoom Rooms, and Zoom Phone, which reached 3 million seats during the quarter. We also maintained strong profitability and cash flow, including 17 per cent in GAAP (generally accepted accounting principles) operating margin, approximately 37 per cent non-GAAP operating margin, approximately 49 per cent operating cash flow margin, and over 46 per cent adjusted free cash flow margin.”

GAAP income from operations for the first quarter was $187.1m, compared to $226.3m from an year-earlier period. After adjusting for stock-based compensation expense and related payroll taxes, litigation settlements, net, and acquisition-related expenses, non-GAAP income from operations for the first quarter was $399.6m, compared to $400.9m in the first quarter of fiscal year 2022. For the first quarter, GAAP operating margin was 17.4 per cent and non-GAAP operating margin was 37.2 per cent.

GAAP net income attributable to common stockholders for the first quarter was $113.6m, or $0.37 per share, compared to $227.4m, or $0.74 per share in the first quarter of fiscal year 2022. Non-GAAP net income for the first quarter was $315.8m, after adjusting for stock-based compensation expense and related payroll taxes, litigation settlements, net, losses on strategic investments, net, acquisition-related expenses, undistributed earnings attributable to participating securities, and the tax effects on non-GAAP adjustments. In the first quarter of fiscal year 2022, non-GAAP net income was $402.1m, or $1.32 per share.

Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of April 30, 2022 stood at $5.7bn. Net cash provided by operating activities was $526.2m for the first quarter, compared to $533.3m in the first quarter of fiscal year 2022. Adjusted free cash flow, which is net cash provided by operating activities less purchases of property and equipment, plus litigation settlement payments, net, was $501.1m, compared to $454.2m in the first quarter of the last fiscal year.

At the end of the first quarter of fiscal year 2023, Zoom had approximately 198,900 enterprise customers, up 24 per cent from the same quarter last fiscal year; 2,916 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 46 per cent from the same quarter last fiscal year.

Meanwhile, for the second quarter of the fiscal year 2023, the company expects total revenue to be between $1.115bn and $1.12bn, while non-GAAP income from operations is expected to be between $360m and $365m. Non-GAAP diluted EPS is expected to be between $0.90 and $0.92 with approximately 308 million non-GAAP weighted average shares outstanding. For the full fiscal year, total revenue is expected to be between $4.53bn and $4.55bn.

Also read: How video conferencing app Zoom achieved peak awareness in the UAE

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